Fed minutes reassure gold investors.
Gold advanced to the highest in a month as traders scaled back bets on a U.S. interest-rate increase in September after Federal Reserve officials said they needed more evidence that the economy is strengthening.
Gold is heading for the biggest monthly gain since January as concern about currency devaluations from China to Kazakhstan boosted demand for a haven. Investors on Wednesday bought the most bullion through physical-backed funds in a week.
“Expectations of a September rate rise are now fading and the focus is shifting to December, to the benefit of gold,” Tom Kendall, a precious metals strategist at ICBC Standard Bank, said by phone from London.
Gold futures for December delivery rose 2.2 percent to settle at $1,153.20 an ounce.
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Most Fed officials in July “judged that the conditions for policy firming had not yet been achieved,” the minutes showed.
‘‘Gold is finding support from the statement since people thought the tone was dovish,” Frank Lesh, a trader at FuturePath Trading in Chicago, said.
Silver futures for December delivery gained 2.2 percent to $15.562 an ounce on the Comex.